US Fed Signals Aggressive Rate Hike. How Will It Affect Indian Economy?
NDTV
The Fed action has already put the global equities markets on the run
The Federal Reserve, the central bank of the United States, on Wednesday hiked policy interest rate by 75 basis points. This is the third straight increase in interest rate by the Federal Reserve since June and it has signalled more large increases in the months to come.
How will the aggressive rate hike by the US Federal Reserve impact the Indian economy? A common saying has it that when America sneezes, the rest of the world catches a cold. This is evident from the impact it had on the global equities, currencies, and commodities markets.
The Fed action has already put the global equities markets on the run. The Indian equities markets key indices plunged for the third straight day on Thursday. The 30 stock S&P BSE Sensex slipped 337.06 points or 0.57 per cent to 59,119.72 points. The broader Nifty 50 of the National Stock Exchange fell 88.55 points or 0.5 per cent to close at 17,629.80 points.
The Indian rupee slipped to a record low of 80.86 against a US dollar on Thursday as compared to its previous day's close at 79.97. This is the biggest single-day decline in the value of the rupee in seven months.
